Looking For A Master Lease To Property Mgmt Co.
I am looking for a Master Lease form.
My plan is to lease all of my properties to a mgmt company.
Then the company will sublease the properties to individual company,
May be the commercial forum has master lease.
Does anybody have a master lease document?
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Perhaps my post was misleading so I thank you for the input on the real numbers but I am aware of all that you just mentioned. I am at a preliminary stage of investigation on this property so "annual rents" or gross operating income is all that I have for now.
I know how to verify current rents I was simply inquiring as to how anybody with vast experience is doing it. Fishing for suggestions if you will.
Thanks in advance.[ Edited by rehab2day on Date 02/03/2007 ]
Well, I dont know if I would call it a bang up job; but i do agree with telemon, you should use his method to be more realistic. Save the IRR, Yield rates, etc for the board room. The only numbers that count is the cap rate and cash flow.
You can use whatever numbers you want, but you must factor that people move in/out, even the best have vacancies and repairs.
But for new investments, I use a quick check of 1% of the purchase price, should be my monthly rents. So for 100k, you should see $1000/mo in rent. You wont find this in a book, but it makes the numbers and equations work for me, if you can get at that price or below. Good luck
rglover548-
Do yo have below market rents? Why do you think your former tenants recommend your apts?
Thanks for the info rglover548.
Excellent point. Thank you.
I believe you also have to get a letter signed by the tenants that explains their understanding of the lease terms. I mean, the owner could give you a lease that promises everything and six months after closing the tenant could claim that they never signed that lease.
So I think you give them a copy of the lease that is given to you by the owner and have them agree to it. I think the letter has to be notarized as well. I believe they are called"Tenant Estoppel Letters".
Good Luck.
JS.
Ask to see the leases now.
1. Unusual to have both expire the same time.-- Ask why they have identical timelines.
2. They might have paid last month rent and security deposit, and a refundable pet deposit. Whatever is being held for them plus interest (if law) should come to you at closing. You also have to follow the terms of the lease. Red flag that they still have 18 mos. on lease.
Ask for rent rolls so that you know if they are paying their rent on time.
Be careful to know what landlord pays and what they pay.
Get an assignment of lease from the curent landlord.
ASSIGNMENT OF LEASE
For value received the undersigned, _____________________________ as assignor and holder of the Lease Agreement contract entered into on the ________ day of __________________, ___________ between _________________________ as landlord and ____________________________________________________________
___________________________, as Tenant for the residential lease of the following real estate: ______________________________________________________________
______________ does hereby assign, transfer and set over to ____________________
__________________________ as assignee, the said Lease Agreement contract, and said assignor does bargain, sell and convey said described premises to said assignee, who hereby assumes and agrees to fulfill the conditions of said Lease Agreement contract.
Dated this ________ date of ___________________, ________
___________________________________________ (Signed)
Assignor Printed Name: __________________________________________
___________________________________________ (Signed)
Assignee Printed Name: __________________________________________
State of _________________ County of _________________________.
I agree with all of the above. Make sure and get copies of the leases as soon as you can but obviously in enough time before close that you can validate info.
If the leases look identical, with the same expiration date, I would ask why? Did they rehab both units and find tenants the very same day ... not really likely. And make sure you get all funds transfered at closing.
I saw a recent case where the terms were month to month and the former owner remained on the hook for the deposits because the new landlord could not be reached. This was a complex case but w/o the lease it got really messy.
I was well entertained just reading the excerpts they provided- give us an overall rating when you are done reading it; is it worth buying?
Thanks,
Chris
Bump.
Thanks larock.
Good advice. When you say local agents, I am assuming that you mean agents local to where the properties are located, right? I have properties in different states so this means I would need multiple local agents.
How do you find these local, independent agents? Is there an associatoion website I can go to? How can you find out which agents are legitimate? The reason why I like the big names is because one can be reasonablconfident that they will pay up if something ever goes wrong.
Thoughts?
JS.
Smithj2,. I have several properties in different cities, all in state however. If you have a good local multiline agency you use for local properties, your personal residence, etc. They usually can point you in the right direction of an agency in other www.areas.Or the other option is get a listing of agents in your coverage area and ask for some references of current customers.
JS--What states?
Also, your insurance score is NOT SUPPOSED to affect your credit score...
Tim
You should check with the Agent and company, as they should give you the information regarding how this impacts your CBR. Most, if not all, the carriers that we represent, "claim" their inquiry DOES NOT impact it. In other words, take them to task...
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